is in the beverages industry, as an alternative to sugary drinks but competes
in the same market within the health beverages niche. In this assignment I will apply PESTLE and
Porter’s five forces to Vithit as well as the beverages industry. I will also analyse Vithit’s strategy for
internationalisation by looking at Greiner’s model of how organisations grow
and evolve and Mintzberg’s five natural configurations.
stands for political, economic, social, technological, environmental and legal.
Political is concerning the opportunities
and threats placed on a business by political institutions such as the
government. The main influences are
government policies, trading policies, grants, lobbying, interest groups,
political trends, taxes and bureaucracy. Economic is regarding economic policies and
economic structures. The main influences
are the local economy, taxation, inflation, interest rates, economic trends,
industry growth, international trade and exchange rates. Social refers to the cultural aspects of
life, beliefs and trends that will affect a products sales and popularity. The main influences are, demographics, media,
brand, lifestyle trends, consumer attitudes and opinions, ethics and
advertising. Technological is concerning
the technological aspects of business, the barriers and incentives. The main influences are new technologies,
legislation, research and innovations, ICT and competitor technology advances. Environmental is relating to the
opportunities and threats the environment has on the business. The main factors are environmental
regulations, reducing carbon footprint and impact of weather. Legal relates to the laws, regulations and
legislation that affect the running of Vithit.
The main factors are Irish legislation, international legislation,
consumer protection, health and safety regulations, competitive regulations and
industry-specific regulations (processpolicy.com, 2018). PESTEL is a way to analyse the strategic
planning of a business. It looks at the
external influences on a business, so they can plan accordingly and be
successful in the long run. It helps the
business with their strategic planning, marketing planning, organizational
change, research and product development.
five forces framework consists of the main elements of competition, the
bargaining power of suppliers, threat of substitutes, bargaining power of
buyers, threat of new entrants and competitive rivalry. The goal of the corporate strategist is to
find a position in the industry to best defend the company and to take
advantage of these forces. The impact of
each of the forces vary depending on the industry but their collective strength
determines the overall profit potential (Porter, 1979). They highlight the strengths and weaknesses
of the business and show which areas need to be adjusted for maximum
results. The weaker the forces the
greater the opportunities for higher performance.